Expenses Incurred by Employees, Partners and Volunteers
Allowances (such as travel allowances) and reimbursements paid to employees, members of a partnership or volunteers may entitle the person that paid them to input tax credits (ITCs) and input tax refunds (ITRs), provided that person is a registrant.
An “allowance” is a periodic payment or other payment that employees receive from their employer, that partners receive from the partnership of which they are members, or that volunteers receive from the charity or public institution to which they give of their time, and that is used to pay certain expenses without the recipient having to account for how the amount is spent.
A “reimbursement” is any amount that an employee, a partner or a volunteer receives (in addition to any salary, wages or other remuneration they may receive). The recipient must prove that he or she incurred the expenses in the course of the activities of the employer, partnership, charity or public institution.